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  • Katherine Powers

Why Investing in Real Estate Makes Sense

Investing in Real Estate makes sense to me. It always has. It always will. To what degree depends on the individual. I’m not going to sit here and tell you that it is ALWAYS a good investment, or that EVERY piece of property is a good investment; and I am certainly not going to tell you that if you had, like me, jumped on the Real Estate bandwagon at the top of the bubble in 2007 that you would be sitting pretty reaping all your gains. Nothing that offers the possibility of a reward is without risk. When considering adding real estate to your long-term financial plan, consider this:

Historically speaking, real estate values go up. The national average of home prices has increased by 4.2%, even accounting for the increase in the average size of homes. At this rate, home prices have at the very least kept up with inflation. Since that is the national average, you can certainly look at certain regions and show larger (or smaller) gains.

However, your home can be considered a forced long-term savings plan because each mortgage payment may include a portion of principal pay down, and the actual value of the home will usually keep pace with inflation. Ideally, at some point in the future, your mortgage gets paid off so that your total monthly payment is much lower than the cost to rent a similar house. 200-120 210-260 200-310 SY0-401 810-403 300-320 400-101 70-533 N10-006 MB2-707 210-060 400-201 350-018 ADM-201 CISSP 1Z0-060 400-051 300-075 MB2-704 100-101 9L0-012 642-999 300-115 MB5-705 70-461 1V0-601 300-206 352-001 70-486 300-135 NS0-157 PR000041 300-101 70-346 CCA-500 70-480 300-208 70-462 EX200 1Z0-803 EX300 ICBB 1Z0-808 AWS-SYSOPS 1Z0-434 300-070 CAS-002 220-801 SSCP PMP 642-997 70-410 101-400 ITILFND AX0-100 2V0-621 102-400 101 1Z0-067 220-802 70-463 C_TAW12_731 70-494 CISM 700-501 NSE4 NSE7 70-483 70-488 200-120


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